Tethered Rights: Liability of American Corporations for Their Foreign Subsidiaries’ Violations of Title VII
Corporations in the free marketplace constantly look for ways to secure advantages over their competitors. As the global economy becomes more integrated, free market competition has led corporations to expand beyond their borders.
As this article will explain; an American parent corporation may be held liable for the actions of its foreign subsidiary under Title VII if the plaintiff is a U.S. citizen and the American parent controls the foreign subsidiary. The article begins with a discussion of the extraterritoriality of Title VII prior to 1991 through an analysis of the text of the statute and judicial interpretations. It will then analyze the changes made to the statute in 1991; to expand its applicability beyond U.S. borders and the courts’ application of the revised statute to scenarios involving international plaintiffs. The article will conclude by offering a few practice pointers for plaintiffs seeking to enforce their rights outside of the United States; U.S. corporations and their subsidiaries that wish to limit their liability under Title VII; and courts that have to grapple with threshold jurisdictional issues in international Title VII cases.
Goldman & Ehrlich is a Chicago employment law firm which concentrates on employment litigation and employment discrimination. We represent private employees. As well as, Federal, State, County and Municipal employees. Along with small businesses in Chicago, the surrounding counties and southwestern Michigan. This includes all actions alleging violations of federal and state laws. What sets our Chicago employment lawyers apart is our vast experience and continued practice on both the plaintiff and defendant sides of employment law cases. We have the insight to anticipate the claims. And importantly, we can analyze the tactics from your opponent building your case to withstand arguments against you.